Los Angeles daily herald., 1887-02-04
THE INSURANCE BILL.


Following Is the billreferred to above:
Senate bill No. SO, introduced by Mr..
Clunie (by request) January 18Th,
1887. Referred to Committee on Ju-
dietary.
To amend section six hundred and six
teen OF the Political Code, relating to
insurance companies.
The People Of the State Of California.
represented in Senate and Assembly,
do enact as .foilo,cs.
Section one (l) of section six hundred
and sixteen (Gl6) of the Political Code is
hereby amended to read as follows:
SEC. GIG. The Insurance Commission
er must require, as condition preee'
dent to the transaction of insurance busi.
ness in this State by any foreign corporf
ton or company, that such corporation
or company shall file in his Office the
name of an agent and his place of resi-
dence in this State, on whom summons
and other process may be served III all
actions or other legal proceedings against
such corporation or company. All pro-
cess so served gives jurisdiction over the
person Of such corporation or com.
pany. The agent SO appointed
and designated shall be deemed
in law general agent and must
be the principal agent or chief manager
of the business of such corporation or
company in this State. Any such for
eign corporation or company shall, as a
further condition precedent to the trans
action of insurance business in this
State, and in cor Iteration of the privi-
lege to transact such insurance business
in this State, make and file with the In
surance Commissioner an agreement, or
stipulation, executed by the proper au-
thorities of such corporation or compa'
nv, in form and substance as follows:
The (giving name of corporation OF
company does hereby stipulate and
agree, that in consideration Of the per.
mission granted by the State of Califor.
MIA to it to transact insurance busi'
ness in this State, that ii at any
time said corporation or company shall
be without en- agent in this State on
whom summons or other legal process
NAV be served, service OF such sum-
mons or other legal process may be made
upon the Insurance Commissioner, such
service upon the Commissioner to have
the same force and effect es if made up
on the corporation or company. When.
ever such service OF summons or other
legal process shall be made upon the In.
surance Commissionsr, he must, within
ten (l0) days thereafter, transmit, post
age paid, by mail copy Of snch sum
mons or other legal process to the com.
pany or corporation, addressed to the
President or Secretary thereof, at its
hom. CT principal office. Such copy
must be certified by the Commissioner,
under his band and official seal; and the
sending of such copy by the said Com,
miss ioner shall be necessary part oi
the service of summons or other legal
process.
Any such foreign corporation or com
pany shall, as further condition 10 the
transact;ng OF insurance business in this
State, and in consideration of the privi
lege of transacting such business in this
State, refrain from entering into any
compact, agreement or contract of any
kind or nature with any other insurance
company or companies, the OBJ
iect of which shall be the fixing
of the rates for insurance or the
creating Of an insurance monopoly,
but each and ell of said corporations oil
companies so permitted to do business
in this State shall conduct said insur.
ance business in such manner
that free competition shall exist
among said companies or corpora
tions to the end that no monopoly shall
be created against the rate payers. Any
corporation or company violating any oi
the provisions of this section shall for
felt their right to do business in this
State, and it shall be the duty Of The
Insurance Commissioner to forthwith
revoke and cancel their license and take
such other measures as may be necessary
to carry out the provisions of this sec
ton.